H1 2023: The prominent producers of Propylene in H1 2023 were Braskem, Reliance Industries Limited, and Formosa Petrochemical Corporation (FPCC). Grupa Azoty Group announced the start of operations at Polimery Police, Poland the largest polypropylene and propylene factory in Central and Eastern Europe, at the end of June 2023. The newly constructed facility of Grupa Azoty Group will produce 429 thousand tonnes of propylene and 437 thousand tonnes of polypropylene annually. With the start of manufacturing at Polimery Police will now rank among Europe's leading manufacturers of this polypropylene. As a result, Grupa Azoty's reputation in the European plastics market will be significantly strengthened. In H1 2023, prices for polypropylene in the Asia Pacific region were full of ups and downs. During the first quarter of 2023, propylene prices in the Asia-Pacific area showed a mixed pattern. From January 2023, rise in procurement activity from downstream polypropylene, Propylene Oxide, and other downstream industries contributed to a surge in demand for the propylene in China. The available inventory was refilled by market participants after the Lunar New Year break. However, the prices dropped in March 2023, mainly as a result of the decline in upstream Crude oil and feedstock Propane prices, which constrained cost support. From April to June 2023, propylene prices remained on the lower side in China due to poor buying activity.
H1 2022: During H1 2022, the key producers of Propylene were Reliance Industries Limited, Braskem, and Formosa Petrochemical Corporation (FPCC). Although, Reliance Industries Limited was the prominent producers of Propylene in the global Propylene market. Geographically, Asia Pacific was leading in terms of consuming Propylene followed by North America in H1 2022. Propylene prices in the first half of H1 2022 surged as crude oil prices reached record highs due to widespread turmoil in Europe and other countries' bans on Russian oil imports. A heavy demand was observed by the downstream sectors of such as construction, polymer and fuel additive sectors, in the Asian nations during March 2022. Furthermore, the transportation costs rose in China during the first half of H1 2022. In the Indian market, propylene prices surged early in H1 2022. Reasons like higher upstream naphtha prices, tight supply, and strong demand from downstream industries made the prices hike up. However, propylene prices dynamics changed in India significantly in the last months of H1 2022 due to an increase in cracker spreads nationwide. Cheap supplies of upstream naphtha and commodity crude fueled the downward trend in prices at the end of H2 2022. Although, in the Chinese market, propylene prices were highly volatile during May- June 2022 due to weak demand by end-user consumers of propylene across China. However, prices faced a downward spiral to ample of supplies (crude oil) from Russia.
H2 2022: In July 2022, Formosa Petrochemical Corporation (FPCC) faced a force majeure owing to some technical difficulties, due to which the plant was temporarily shut and is still not in running till the current date. Furthermore, in December 2022, Nayara Energy, a new player in the petrochemical industry, announced about its entry in the petrochemical market by a greenfield expansion by setting up a Polypropylene plant at Vadinar, Gujarat, India. This plant aims to produce 450 thousand tonnes of polypropylene annually along with, a Propylene Recovery Unit, and upgrades to the existing FCC Unit and a Polypropylene Unit. The pre-commissioning of the Propylene Recovery Unit is likely to start in February 2023. Based on consumption, Asia Pacific continued to display a bearish behavior for Propylene in H2 2022. Propylene's underperformance was primarily due to weak demand due to oversupply of downstream polypropylene across Asia. Furthermore, in China, the operation of downstream factories was restricted in July – August 2022 due to irregular power distribution due to the heat wave across the nation. As a result, several manufacturers had significantly reduced propylene production across China. The bearish market outlook consistently prevailed throughout H2 2022 across Asia. The demand side in the China’s market remained weak owing to the weak showcasing by the polymer industry. A similar view of the propylene market was presented especially in the Korean market.
The global Propylene market stood at approximately 117 million tonnes in 2022 and expected to grow at a steady CAGR of 5.54% during the forecast period until 2030. In December 2022, Nayara Energy laid the foundation of a new petrochemical project at Vadinar, Gujarat, India. This project consisted of a Polypropylene plant with an annual capacity of 450 thousand tonnes of polypropylene, a Propylene Recovery Unit, and upgrades to the existing FCC Unit and a Polypropylene Unit.
Propylene is a versatile commodity in the chemicals and petrochemicals industry as it is a key raw material to several other chemicals. Based on its purity, Propylene is segmented into three grades- - polymer grade (>=99.5 percent pure), chemical grade (>=93.4 purity), and refinery grade (with a purity of around 60-70 percent). It is widely used as fuel gas and in the manufacturing of fibers, and elastomers. Propylene is also used as a feedstock to manufacture various other chemicals such as Polypropylene, Acrylonitrile, Acetone, Isopropyl Alcohol, Propylene Glycol, propylene oxide, and cumene, through various processes like polymerization, esterification, oxidation, hydration, alkylation, and others.
The majority of the total Propylene produced globally is consumed in the production of Polypropylene via the polymerization process. Owing to the applications of Propylene and its derivatives plastics, various chemical industries are extensively dependent on it, and it is one of the world’s most largely produced commodities after ethylene. Polypropylene is the most widely used thermoplastic polymer and key material for plastic parts and is used in several industries including packaging, electronics and electrical, automotive, textile, and others. Other derivatives of Propylene find application in several industries including Cosmetics and Personal Care, Food & Beverage, Pharmaceuticals, Building & Construction, Automotive, and Others (textile, paper, pulp, electronics, consumer goods, chemicals). With the expansion of these sectors, the demand for Propylene is anticipated to rise in the forecast period. However, the factors like health and environmental hazards related to Propylene along with strict safety guidelines related to its production and transportation are anticipated to be the major restraints in the market growth of Propylene. Owing to these factors, the Propylene market is expected to reach 180 million tonnes in 2030.
Regionally, the Asia Pacific region is dominating the Propylene market followed by North America and Europe. Asia Pacific region captured approximately 45% in 2022. Due to the expansion of sectors like petrochemicals, textiles, and construction in nations like China, India, and Southeast Asia, the Asia Pacific is a significant consumer of propylene. Additionally, China is the leading producer of textiles, plastics, and electronics and is expected to lead the propylene industry over the forthcoming years. In the Asia Pacific region, China, India, Japan, and South Korea are among the world’s leading consumers of Propylene and are likely to bolster the market growth of Propylene in the Asia Pacific over the forecast period.
Based on the end-user industry, the global Propylene market is segmented into Polypropylene, Cumene, Oxo Alcohol, Isopropanol, and Others. Among these industries, the Polypropylene industry is the biggest consumer and displayed a consumption of about 90% of the market in 2022. Polypropylene is a versatile polymer with applications in various industries such as Packaging, Automotive, Infrastructure and Construction, and Consumer goods.
Significant players in the Global Propylene market are Reliance Industries Limited, Indian Oil Corporation Limited, HPCL-Mittal Energy Limited, Haldia Petrochemicals Limited, Mangalore Refinery & Petrochemicals Ltd, Brahmaputra Cracker and Polymers Limited, Shenhua Ningxia Coal Group Corporation Limited, Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited, GAIL (India) Limited, Nayara Energy Limited, Fujian Refining & Petrochemical Co Ltd, Zhong Tian He Chuang Energy, Sinopec Sabic Tianjin Petrochemical Co., Ltd., Wanhua Chemical Group Co., Ltd, and Others.
Years considered for this report:
Historical Period: 2015- 2022
Base Year: 2022
Estimated Year: 2023
Forecast Period: 2024-2030
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Objective of the Study:
• To assess the demand-supply scenario of Propylene which covers production, demand and supply of Propylene market in the globe.
• To analyse and forecast the market size of Propylene
• To classify and forecast Global Propylene market based on end-use and regional distribution.
• To examine competitive developments such as expansions, mergers & acquisitions, etc., of Propylene market in the globe.
To extract data for Global Propylene market, primary research surveys were conducted with Propylene manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for Global Propylene market over the coming years.
ChemAnalyst calculated Propylene demand in the globe by analyzing the historical data and demand forecast which was carried out considering the raw materials to produce Propylene. ChemAnalyst sourced these values from industry experts and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Propylene manufacturers and other stakeholders
• Organizations, forums and alliances related to Propylene distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Propylene s manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years (next two to five years), thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, Global Propylene s market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Attribute
Details
Market size Volume in 2022
117 million tonnes
Market size Volume by 2030
180 million tonnes
Growth Rate
CAGR of 5.54% from 2023 to 2030
Base year for estimation
2023
Historic Data
2015 – 2022
Forecast period
2024 – 2030
Quantitative units
Demand in million tonnes and CAGR from 2023 to 2030
Report coverage
Industry Market Size, Capacity by Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End- Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Company Share, Foreign Trade Manufacturing Process, Policy and Regulatory Landscape.
Segments covered
By End-Use: (Polypropylene, Cumene, Oxo Alcohol, Isopropanol, and Others)
By Sales Channel: (Direct Sale and Indirect Sale)
Regional scope
North America, Europe, Asia Pacific, Middle East and Africa, and South America.
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Member - Board of Directors
Osaka Gas Co. Ltd
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What was global market size of Propylene in terms of volume in 2022?
Ans:
The global market size of Propylene has grown tremendously in the historic period of 2015-2022 and reached nearly 117 million tonnes in 2022.
Q2.
Which end-use industry is dominating the Global Propylene market?
Ans:
The Polypropylene industry is dominating the Propylene market and held a market share of approximately 90% in 2022.
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